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Full text of "Annual Evaluation Report Fiscal Year 1984"

514-4

Program Scope:    Table   2 provides a detailed breakdown   on the distribution

?Lr*roS   ^ ParV°r each type  of  grant  in   FY 1983   and FY 1984.    In  FY

1984 5.2 million   from  Part   B  was  transferred to the   new  Endowment  Grant
Program.

The historically black colleges receive significant funding from this pro-
gram. The Administration, to meet its goal of increasing Federal funding
to black colleges, has made significant improvement in increasing black
college funding through this program. The improvement can be seen in
Table 1: black colleges represent 29 percent of the continuation funding
but account for 53 percent of the new funding. Black colleges account for
16 percent of the colleges that have continuation finding but account for
25 percent of the colleges with new funding.

Program Effecti veness: In October 1983, the Department completed a study
of the Institutional Aid Program and a workbook for program managers. The
workbook suggests that funded activities must be an integral part of the
institution's development plan if the activities are to be successful.
The president and other principal administrative officers must support
these plans and have an active role in the Institution's developmental
activities. There must be strong administrative support for activities
begun before receipt of Federal funds. Accounting procedures must be in
place to track developmental costs of the project.

As the study explained, to be successful an activity must make a significant
contribution to  the   institution's development  and  viability.    Development
may be less a matter  of   growth than a matter of attaining a modest, more
cost-effective operation.    Conversely, developmental  activities may lead to
desirable but more costly operation with the potential for increased revenue.
In either  case,   as  the   study   showed, these developmental   activities take
more time than is commonly believed.    The study also showed that the insti-
tution must be   committed to the  success   of the activity;  in fact,  if the
Federal  funding    exceeds   10   percent    of   the   institutional    revenue,   the
institution is   not   financially   committed   and   the   activities   will   fail.
D.    Plans for Program Improvement and Recommendations for Legislation
The FY  1984   funding  level   was  $134,416,000.     Appropriation   language   was
added in  both  FY 1984 and FY 1985 to ensure funding for historically black
colleges at   a   level   of   not   less  than  $45,741,000,   an   increase   over the
FY 1983   obligation.*   The   appropriation    language   applies   the   setaside
for black   colleges   to   all   of  Title  III,   and  not  just  for  Part  B  as  is
stated in the legislation.

The Challenge Grant Program is being terminated. No new awards have been
made since FY 1983. Challenge Grant funds, except for those needed to
complete non-competing continuation awards through FY 1986, have been
combined with the funds that must be provided from the cost-sharing portion

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of the Special Needs Program.ate, or professional students (enrolled or accepted